Liberaware Co., Ltd.

Business Details

Under the vision of "making invisible risks visible," the company develops and operates three businesses—Drone Business, Digital Twin Business, and Solution Development Business—centered on its proprietary indoor confined-space inspection drone "IBIS" and its 3D cloud platform "LAPIS." Its main customers span manufacturing, energy, railways, construction, and government agencies, and it provides an end-to-end service covering data acquisition, AI analysis, and cloud management in "narrow, dark, and hazardous" special environments where GPS signals do not reach. The group operates as a single segment, the Infrastructure DX Business.

Recent Overview

Cumulative Q3 revenue of ¥1,216 million and operating loss of -¥1,969 million; full-year earnings forecast revised

For the cumulative nine months of FY2026 (ending July 2026) (August 2025 to April 2026), revenue was ¥1,216 million, operating loss was -¥1,969 million, and ordinary loss was -¥1,348 million (aided by subsidy income of ¥660 million). The equity ratio at the end of Q3 was 46.6%, recovering from 32.6% at the end of the interim period (capital stock and capital surplus each increased by ¥530 million due to a third-party allotment of new shares to four core sewerage industry companies at the end of March 2026). The full-year earnings forecast was revised to revenue of ¥1,700 million to ¥1,900 million and an operating loss of -¥2,154 million to -¥2,311 million. Full-scale revenue contribution from overseas expansion (South Korea, Southeast Asia, etc.) and the new product "Torinos" is expected from the next fiscal year onward. The company has resolved to reduce its capital stock and capital reserves (scheduled to take effect on July 17, 2026) and is preparing to implement agile capital policy measures.

Key Products

Growth Drivers

• Expanding demand for indoor confined-space inspection DX driven by aging infrastructure, an aging skilled workforce, and labor shortages
• Accelerated adoption of drones in the sewer sector triggered by the January 2025 road collapse accident in Yashio City, Saitama Prefecture (surveys conducted at over 40 locations cumulatively), and institutional development through the "Bill to Partially Amend the Sewerage Act, etc." (approved by the Cabinet in March 2026)
• Progress on two Cabinet Office SBIR national projects (construction DX: subsidy of up to ¥470 million; railway inspection: subsidy of up to ¥5.2 billion) and associated subsidy income (¥660 million cumulative Q3)
• Expansion of customer base and business collaboration through capital and business alliances with four core companies in the sewerage industry (Nippon Hume, Nissui Consultant, Kansei Kogyo, Yamada Shokai) and Kyushu Electric Power
• Strengthened collaboration with the government and local authorities through the Ministry of Land, Infrastructure, Transport and Tourism's "AB-Cross Project" and selection for applied research in sewerage for fiscal 2026
• Advancement of commercialization of construction progress management support services using the spatial iPaaS "LAPIS," and expansion into infrastructure maintenance markets such as sewers, electric power, and bridges
• Adoption and business alliance for "IBIS2" with a major South Korean energy company, and development of the Southeast Asian market (utilizing public support programs from the Ministry of Economy, Trade and Industry, JICA, etc.)
• Development of new markets for railway inspection solutions (mass-production prototype development underway)

Risks

• Substantial operating loss (-¥1,969 million cumulative Q3) due to the continuation of the upfront investment phase, and a full-year operating loss forecast of -¥2,154 million to -¥2,311 million
• Dependence on SBIR subsidy income (¥660 million contributed to reducing the cumulative Q3 ordinary loss) and the risk of a shift in the revenue structure once subsidies end
• Decline in cash on hand (from ¥752 million at the end of the prior fiscal year to ¥629 million at the end of Q3) and cash flow risk stemming from continued upfront investment
• Uncertainty in earnings forecasts, as indicated by the revision of the full-year forecast (both revenue and losses revised)
• Delays in market formation in overseas expansion (South Korea, Southeast Asia, etc.), with South Korea still in its early stage and full-scale revenue contribution from other regions expected only from the next fiscal year onward
• Risk of delayed revenue contribution from the new product "Torinos" due to prolonged PoC, making full-scale mass deployment difficult within the current fiscal year
• Risk of revenue concentration among core clients (CalTa, TEPCO, etc.)
• Risk of delays in R&D for next-generation IBIS and autonomous drones, and risk of market entry by competitors
• Risks related to information security and data governance (handling of customers' confidential and personal information)
• The reduction of capital stock and capital reserves (scheduled to take effect on July 17, 2026) being contingent on approval at an extraordinary general meeting of shareholders (scheduled for July 14, 2026)